Millennials – the name given to those born approximately between 1981 and 1996 – currently form the largest age group. As this cohort continues to age, grow their families, hone in on their careers, and inherit generational wealth, they are transforming the financial services industry and how we bank. Millennials were the first digital natives, and they have witnessed impactful technological change and economic conditions that affect their relationship with banks and credit unions.
In this article, we’ll explain why data analytics is critical to building solid relationships with this aging consumer group. We’ll also discuss generational differences and the evolution of millennial values, primary financial needs, and perception of financial institutions.
The Financial Wants and Needs of Millennials
In recent years, we’ve seen the impact of fintech on the financial industry. The millennial generation has participated in the explosion of digital-only banks, and they’ve expressed a willingness to change banks. This is why it’s important to focus on millennials’ wants and needs so your bank or credit union can build loyal relationships and increase retention.
Although some people choose non-traditional banking routes, physical branches are still very much in demand. People of all ages, including millennials, may choose to visit a brick-and-mortar location to speak with someone if they need advice for a milestone purchase or help with a difficult financial concept. An updated data solution helps your institution quickly respond with advice through easy access to detailed customer profiles.
Even though there’s value in physical locations, millennials also expect a straightforward, secure digital experience – especially when opening an account or using a bank/credit union’s mobile app. An advanced analytics solution breaks down data siloes and aggregates data into visually appealing actionable insights, while also allowing your data to be accessible institution-wide. You are able to gather information on multiple factors of the digital experience with your analytics solution, including how many customers are enrolled in mobile banking and their activity status.
When your departments all have access to the same information, it’s easier to improve customer experience because everyone is on the same page involving customer needs, feedback, and growth opportunities. For executive and management teams, the right analytics solution enhances strategic decision-making with high-value data insights that reveal customer priorities and engagement with digital tools.
Compared to older generations, more millennials are completing undergraduate and graduate school, and this education and career focus has pushed back the age that millennials purchase homes, get married, and/or have children. Your bank or credit union should be a significant resource during these monumental purchasing and budgeting decisions. As they continue to age, millennials’ focus will be on retirement goals and the future of their children. Banks and credit unions can utilize their data solution to make sure they know their consumers and are up-to-date on life milestones. This helps financial institutions offer personalized services to fit consumers’ current financial needs.
Advanced data technology supports your understanding of a millennial customer as an individual, but also provides information as to how a group of millennial customers engages with your institution’s products and services. It’s important to measure which offerings that your millennial customers interact with so you can become a trusted financial partner as they continue to age and make impactful decisions for themselves and the next generation. KlariVis’ dashboard empowers you with real-time, accessible data so you can avoid relying on gut instinct when making decisions around customer behavior and product utilization among customer segments.
How Do Millennials Perceive Financial Institutions?
Millennials grew up during a time defined by change. More so than their parents and grandparents, millennials were introduced to advanced technology from birth. In addition to the fast-paced tech disruption, millennials have gone through extremely turbulent economic conditions at pivotal points in their lives. These impactful events include recessions, increased cost of education and student loan debt, and the COVID-19 pandemic. These factors have all caused financial stressors that the previous generations didn’t experience as deeply at the same age.
According to research, many millennials feel as if their financial institution doesn’t truly know them, look out for them, or reward them, which can cause distrust and skepticism. With tools like KlariVis, enterprise data is organized and stored safely. You can quickly and accurately drill down to see customer data, and with the time you save, you can spend more time talking with consumers to learn more about their needs. With a focus on data security and your customers’ digital experience, your FI can create solid, holistic customer relationships based on features that millennials value.
The millennial age group is the largest today, and these consumers are shaping the present and future of banking. They have different values and needs than past generations, ranging from data security to personalized advice and educational resources. It’s more important than ever for your data to fuel your customer relationships, and this will contribute to creating a complete, accurate view of your customers so you can understand and anticipate their needs. The right data solution will ensure that your financial institution is building relationships with existing millennial customers and attracting new ones.
With solutions like KlariVis, you can make your data come to life. To learn what KlariVis can do for your financial institution, visit our solutions page.